A growing market open to opportunities

It also has the second largest population of the region after Egypt, with an estimated 78.8 million people in 2015. Iran’s economy is characterized by a large hydrocarbon sector, small scale agriculture and services sectors, and a noticeable state presence in manufacturing and financial services. It ranks second in the world in natural gas reserves and fourth in proven crude oil reserves. Economic activity and government revenues still depend to a large extent on oil revenues and therefore remain volatile.

Iranian authorities have adopted a comprehensive strategy encompassing market-based reforms as reflected in the government’s 20-year vision document and the recently issued sixth five-year development plan for the
2016-2021 period. The sixth five-year development plan remains ambitious, comprised of three pillars, namely, the development of a resilient economy, progress in science and technology, and the promotion of cultural excellence. On the economic front, the development plan envisages an annual economic growth rate of 8 percent and considers the implementation of reforms of state-owned enterprises, the financial and banking sector, and the allocation and management of oil revenues among the main priorities of the government during the five-year period.

Private sector growth and job creation; the priorities

Stimulating private sector growth and job creation is a continued focus for the government considering the number of workers who should enter the labour market in the coming years, including women and youth and the persistently high unemployment rate (11.7 percent). Tackling youth unemployment in particular is a pressing policy issue in line with the evolving demographic profile of the country, which is characterized by more than 60 percent of its population estimated to be under the age of 30 in 2013.


Iran is the second largest economy in the Middle East and North Africa (MENA) region after Saudi Arabia, with an estimated Gross Domestic Product (GDP) in 2015 of US$393.7 billion.

TUBACEX Group’s firm commitment in Iran

TUBACEX is implementing a strategy to be very well positioned in Iran gaining presence in the region through a strong commercial approach and by getting its products closer to the customers. The main activities developed in the country in the last months have been:

• The opening of a new commercial office in Tehran to introduce our offer of products and services to the local market from de inside.

• An agreement with a local business partner to develop a local content for different upstream products and fittings. Additionally, they will be TUBACEX’s partners in TSS Iran to go to the market.

 An Agreement with a company based in Tehran and focused on engineering consultancy and projects management to promote project for downstream, fertilizer and Powergen industries, with some orders already made. As example of this is that TUBACEX has been awarded with the Maintenance and Overhaul of three Furnaces (Fire Heaters of the MTBE –methyl tert-butyl ether) in the Bandar Imam Petrochemical Co. complex (BIPC Expansion Project) in Iran. The Project consists of the manufacturing and supply of the Stainless Steel Seamless Tubes in straight condition and the U bend tubes for the radiant section of those furnaces. Nasim Jonoub Company in Iran will be the responsible for the maintenance and replacement job in this South Iranian Petrochemical complex.

 The organization of the first technical conference in Tehran, celebrated last May 31 by TUBACEX and Phoenix Vision and with 140 participants from different vertical industries from the Oil and Gas market. The main segments addressed was on Corrosion in the Downstream oil and Gas Petrochemical and Refineries, Fertilizers, Acid segments and in Power generation and above all a high emphasize on Innovative solutions. The event brought a strong visibility of TUBACEX and it will bring interesting commercial opportunities.

• Presence of TUBACEX in the Iran Oil&Gas show in May 7-11, establishing contacts with several potential customers and developing a network and infrastructure for its future commercial activity in Iran.